Multiple Choice
Which of the following statements is not correct concerning credit risk?
A) Credit risk is the risk of counterparty default and is usually the single largest risk facing a FI.
B) Credit risk occurs when borrowers are unable to repay their loans on time.
C) Credit risk decreases when FIs concentrate their loan exposures on a few counterparties and APRA requires that FIs have appropriate polices to manage such risk.
D) Credit risk increases when FIs concentrate their loan exposures on a few counterparties.
Correct Answer:
Verified
Correct Answer:
Verified
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